Which of the Following Correctly Identifies Areas of Authority and Responsibility

question 73

Multiple Choice

Which of the following correctly identifies areas of authority and responsibility for a chief financial officer (CFO) ?

• A) Accounting and finance
• B) Marketing and finance
• C) Production and accounting
• D) Finance and research and development

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Definitions:

Sunk Cost

Costs that have already been incurred and cannot be recovered or changed.

Make or Buy

A decision-making process in which a company chooses between manufacturing a product internally or purchasing it from an external supplier.

Significant Sunk Costs

Expenses that have already been incurred and cannot be recovered or changed.

Avoidable Cost

Costs that can be eliminated if a certain decision is made, not incurred if a particular activity is avoided.